Jefferies Initiates DCT Industrial Trust At Hold (DCT)

Jefferies & Co. is initiating coverage on DCT Industrial Trust

with a Hold rating and a $5 price target on shares. In a note sent to clients, Jefferies writes, "DCT trades at the most attractive valuation in our Industrial REIT initiation universe on multiple metrics: 1) lowest 2012 FFO multiple, 2) highest implied cap rate, 3) highest dividend yield, and 4) an FFO CAGR through 2013 that is higher than EGP, its closest peer. However, we are cautious on DCT given its: 1) exposure to weaker markets, 2) limited growth versus PLD and AMB, and 3) near-term debt maturities. We are inclined to be more positive should DCT refinance its upcoming debt maturities at reasonable rates ($50M in 4/11, and $200M in 6/11), and show improved leasing fundamentals." Shares of DCT closed at $5.38 yesterday.